Bitcoin Hodlers Stand Strong as Dormant Supply Hits Record High with 70% of Circulating Supply Dormant for Over a Year

By 0xK2 11/21/23 12:54 PM

Recent data from CryptoQuant has unveiled a significant surge in the amount of Bitcoin that hasn’t moved in over a year, reaching an unprecedented high of 13.65 million. This milestone represents a staggering 70% of the total circulating supply, reflecting a steadfast holding pattern among investors.

Notably, the accumulation trend extends further, with the number of Bitcoins inactive for over two years rapidly climbing to nearly 11.2 million, signaling a resilient stance by long-term holders despite market fluctuations during the bearish phase.

Analysts anticipate a continued decline in Bitcoin’s velocity as holders prepare for the anticipated bull phase of the market cycle. This decreased velocity is expected to persist until Bitcoin approaches its previous all-time high.

However, experts foresee a potential shift on the horizon as the market dynamics evolve. They project an imminent increase in velocity and a subsequent decline in the number of inactive Bitcoins as Bitcoin’s upward trajectory gains momentum. This shift could arise as long-term holders, traditionally known as ‘hodlers,’ potentially transition to capitalizing on profits, impacting the dormant supply.

The current accumulation phase, dominated by steadfast holders awaiting favorable market conditions, may witness a transformation. Hodlers, who have weathered market volatility and held onto their assets during the downturn, might start to realize gains, altering the landscape of Bitcoin’s inactive supply.

As Bitcoin’s value surges and bullish sentiments prevail, the narrative may shift from long-term accumulation to profit realization, potentially influencing the velocity of Bitcoin as previously inactive coins begin to move within the market.

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